Banks Rush to Launch Stablecoins Amid Fears of Customer Exodus

Wall Street's largest banks are racing to launch their own stablecoins, digital tokens pegged to traditional currencies, in an effort to prevent customers from switching to cryptocurrency platforms.

A consortium of 21 major financial institutions, including Bank of America, Citi, Goldman Sachs and Wells Fargo, has committed to building a company that will issue a US dollar-denominated stablecoin by the first half of 2027.

The group's plans are driven in part by Standard Chartered's estimate that stablecoins could pull about $500 billion from US bank deposits by the end of 2028, with regional banks particularly vulnerable due to their reliance on interest income.